14. Nadia takes out a loan of $150,000 to purchase an apartment. The loan is being charged a yearly interest rate of 2.5% applied monthly. Nadia is paying off the loan by making monthly payments of $500.00. (a) How much of Nadia's first payment goes towards paying interest and how much of it goes towards reducing the initial $150,000 loan amount? Show how you found your answers (b) Did Nadia reduce the loan amount she owed more in the first payment or the second payment? Justify.
Q: The average college graduate owes $22,500 in loans incurred over his/her college career. Now that it…
A: To determine the monthly interest rate charged on the student loan.
Q: Annette wants a home improvement loan to renovate her kitchen. Her bank will charge her 3.6%,…
A: Loan is a value which is borrowed from external sources for a period and this amount is repaid later…
Q: A recent college graduate buys a new car by borrowing $18,000 at 7.2%, compounded monthly, for 4…
A: Amortized loan: The method of loan where the borrower makes the periodic payments which include both…
Q: Susan had an auto loan left of $11,000 with a 14.6% interest rate. Her payment is $400 a month, $200…
A: The monthly interest rate on the outstanding loan : The monthly interest rate on the outstanding…
Q: Scenario: Ashley decides to pay 500 total to her student loans each month. She continues the minimum…
A: Here, Details of loan is as follows: Total Payment for both loans is $500 as per scenario Minimum…
Q: Tammy realizes that she has charged too much on her credit card and has racked up $15,000 in debt.…
A: APR :- The cost of taking loans annually, including fees, is stated as a percentage and is known as…
Q: In Aug. 2007, Irene Engels borrowed $50,000, and she borrowed another $50,000 in Aug. 2008, for…
A: The concept of the time value of money states that the current worth of money is more than its value…
Q: Carrie took out a $48,000 student loan with a fixed interest rate to pay for college. Carrie did not…
A: Given information: Student loan is $48,000 Loan balance increasing to $81,000 Number of years is 9
Q: 6. Genesus wants to buy a car. Her monthly income is $800, and she already has a credit card payment…
A: Debt to income ratio Monthly recurring debt / Gross monthly income
Q: Jacqueline took out a $30,000 student loan with a fixed interest rate to pay for college. Jacqueline…
A: Growth investors frequently invest in growth stocks, which are new or small firms whose earnings are…
Q: Dagmar has a 4-year car loan at an annual interest rate of 4.5%. She has made 28 payments of…
A: Pay-off amount: The amount which satisfies all the terms of the loan and completely write-off the…
Q: Paige refinanced her home loan. The new loan of $85,000.00 has an interest rate of 3.7% compounded…
A: i) Monthly Payment: Solved using Financial Calculator PV = - 85,000 I/Y = 3.7/12 = 0.3083333333 N =…
Q: When Maria Acosta bought a car 2 1/2 years ago, she borrowed $10,000 for 48 months at 7.2%…
A: Compound interest refers to the amount to be paid on the borrowed amount for a definite period. It…
Q: Jane has a $35,000 bank loan that she wishes to pay off in five equal annual payments with 12%…
A: given, bank loan = $35,000 installment = 5 interest = 12%
Q: Natasha is going to take out an unsubsidized student loan of $13,500 at a 4.2% APR, compounded…
A: An unsubsidized student loan is a loan on which interest starts accruing the day money is deposited…
Q: Kristen purchased a car for $43,000; she paid $2150 as a down payment and financed the balance…
A: Here, Value of Car is $43,000 Down Payment is $2,150 Therefore, Loan Amount is : =$43,000-$2,150…
Q: b) that his monthly house and property tax payment should not exceed 35% of his disposable monthly…
A: As per our policy, we only answer one question when many different questions are provided. The first…
Q: Ms. Ligaya wants to buy her dream car. However, she does not have enough money to pay for ₱5,000,000…
A: Principal amortization means an amount of principal borrowing payment included in the instalment.…
Q: A person needs $17,700 immediately as a down payment on a new home. Suppose that she can borrow…
A: Continuously compounded interest rate refers to the interest rate that is calculated on the…
Q: A lump-sum loan of $5,000 is needed by Chandra to pay for college expenses. She has obtained small…
A: Interest on the loan is the excess money paid along with the principal every year or in a lump sum…
Q: A recent college graduate buys a new car by borrowing $24,000 at 8.4%, compounded monthly, for 5…
A:
Q: (a) Heather borrowed $5000 from her grandmother as a down payment on her first car. She promised to…
A: calculation of above requirement are as follows
Q: 3.) Hamlet paid back $280 monthly installments to the bank for a loan. He earned 10.5% APR and had…
A: The problem is solved using actuarial method. Monthly instalment “R” = $280 APR = 10.5% Number of…
Q: A recent college graduate buys a new car by borrowing $18,000 at 6%, compounded monthly, for 4…
A: The following calculations are done in the records of a recent college graduate who has applied for…
Q: 2. Suppose Sana borrows P8,500 from Momo to add to her son's tuition payment. She promises to pay…
A: Future Value: Using an expected rate of growth, future value (FV) is defined as the worth of a…
Q: Stephanie borrows Php77,000 for 10 months at an interest rate of 12% per year. Find the interest…
A: Interest earned refers to the product of amount invested/borrowed, time period and interest rate.
Q: Leslie Mosallam, who recently sold her Porsche, placed $10,000 in a savings account paying annual…
A: future value: value of the present cashflow at future date.
Q: While Jack was a student at the University of Georgia she borrowed $12,000in student loans at an…
A: The nper function in excel can be used for the purpose of determining the amount of time required to…
Q: Sherry Smart is buying a $350,000 home and will pay the mortgage monthly for 30 years. She has a…
A: The question gives the following information:
Q: Nona purchased a new car earlier today for $40,000. She financed the entire amount with a seven-year…
A: Motrgage loans are one which are repaid gradually in equal installments over a period of time.…
Q: 28. Cristina didn't have enough money to remodel her bathroom so she needed a home-improvement loan.…
A: Interest Rate = 4.65%/12 per month Monthly Payment = 238.51 Time Period = 3 years × 12 = 36 months…
Q: Sarah had been contributing $300 pre-tax per month to a retirement account that pays 2.16% interest…
A: The penalty amount will be applicable on the future value amount after 10 years
Q: When Mary had 4 years left in college, she took out a student loan for $15,110. The loan has an…
A: Loan Amount = 15,110 Time Period in college = T = 4 years Time Period for loan repayment = N = 36…
Q: Ms. Ligaya wants to buy her dream car. However, she does not have enough money to pay for ₱5,000,000…
A: The question is based on the concept of Financial Management.
Q: After 48 months Jamie’s loan will be paid off. At the end of 48 months what will be the remaining…
A: An amortization schedule shows the amount of principal, interest, and the amount borrowed. The…
Q: Sandra borrows $25, 000 from her parents to help pay college expenses. She agrees to repay the loan…
A: Given: Loan amount “PV” = $25000 Interest rate “r” = 3%/12 (compounded convertible) End of month…
Q: Taibi Hafid is considering the purchase of a used car. The price, including the title and taxes, is…
A: Loan is an agreement between lender and borrower where lender provide borrower with funds in…
Q: Darwin is a young entrepreneur trying to keep his business afloat. He has missed two payments to a…
A: We will use the concept of time value of money here. As per the concept of time value of money the…
Q: Kiko bought a smart TV with Php 135,000. Assuming that there is no downpayment, Kiko needs to pay…
A: a) Interest for the first semi annual payment = Principal * Rate * Time = 135000 * 6%…
Q: A recent college graduate buys a new car by borrowing $16,000 at 6%, compounded monthly, for 5…
A: Payment of loan made in fixed installment which includes interest as well as portion of principal,…
Q: Nina buys a new sport utility vehicle for $35,000. She trades in her old truck and receives $10,000,…
A: Installment is the sum of payments made by the borrower periodically in order to pay back the loan…
Q: Ian loaned his friend $20,000 to start a new business. He considers this loan to be an investment,…
A: Total Loaned amount is $20,000 Interest rate is 6% Time period is 4 years To Find:- Annual Payment…
Q: 9)Jamie and Jake each recently bought a different new car. Both received a loan from a local bank.…
A: The present value of the loan will be calculated b y discounting all the future installments.
Q: Phoebe realizes that she has charged too much on her credit card and has racked up $6,000 in debt.…
A: Here, Present Value is $6,000 Monthly Payment (PMT) is $200 Interest Rate is 18% Therefore, Monthly…
Q: A recent college graduate buys a new car by borrowing $18,000 at 8.4%, compounded monthly, for 5…
A: Borrowing = 18,000 Compounding Monthly, hence we will divide interest by 12 and multiply time period…
Q: Carrie took out a $48,000 student loan with a fixed interest rate to pay for college. Carrie did not…
A: Loan Amount is $48000..............(Present Value) Time period is 9 years Loan balance increased to…
Trending now
This is a popular solution!
Step by step
Solved in 4 steps with 2 images
- Determine whether each scenario below is a savings/investments question or a loans question. 1. Sabrina finances a $21,999 car at 4.25% APR over 5 years. If she makes a down payment for $5,000, how much will she end up paying in interest for the car? 2. Alejandro deposits $1,500 into an investment account with an APR of 2.25% compounded monthly. How much does Alejandro need to put into his account each month in order to have $5,000 in 3 years to purchase a car in cash? 3. Amy wants to buy a house for $150,000. She doesn't have enough yet for a 20% down payment. If she puts $2,000 into the account now and $500 every month, how long will it take for her to have enough for a 20% down payment to buy this house? 4. Arnie paid $500 for his $1,200 laptop. If he finances the rest at 6.75% over 24 months, how much money will he end up paying in total for this laptop?Leslie Mosallam, who recently sold her Porsche, placed $10,000 in a savings account paying annual com- pound interest of 6 percent. a. Calculate the amount of money that will accumulate if Leslie leaves the money in the bank for 1, 5, and 15 years. b. Suppose Leslie moves her money into an account that pays 8 percent or one that pays 10 percent. Rework part a using 8 percent and 10 percent. c. What conclusions can you draw about the relationship among interest rates, time, and future sums from the calculations you just did? use EXCEL to work this out and show the formula!Can you explain to me how to solve this equation? Beverly borrowed $12,600.00 at a low interest rate of 2.2% compounded monthly for 3 years to pay off her credit card debt. After making 2 monthly payments of $362.00, she is ready to pay off the loan.Determine the payoff value of Beverly’s loan after making 2 monthly payments of $362.00.Calculate the amount Beverly saved by paying off her loan after making 2 monthly payments.
- III. Assume compound interest is used to solve the following problems. 1. Stanley borrowed $4500.00 from his credit union to do some home renovations. The loan has an annual interest rate of 5.75% and an amortization period of 3 years. a. What is Stanley's monthly payment? b. Calculate the total amount he will pay over 3 years. G Calculate the finance charge on the loan. 2. Adele wants to buy a used car that costs $2900.00. She has $1100.00 saved up for a down payment. a. How much will Adele have to borrow to buy the car? b. She can get a loan at 6.50% per annum with an amortization period of 2 years. What will be her monthly payment? c. What will be the total she pays for the loan? d. How much will the car cost? 3. Calculate the monthly payment, the total amount paid, and the finance charge for the following loans: a $2000.00 at 8.00% per annum for 3 years; b. $10 000.00 at 6.25% per annum for 5 years; and c. $1500.00 at 3.75% per annum for 2 years. 4. Harley used her credit card to…Heather borrowed $4700 on her credit card to purchase new furniture. Find the monthly interest charges, which are 1.8% per month on the unpaid balance. Find the interest charges if she moves the debt to a credit card charging 0.7% per month on the unpaid balance. What are the interest charges at 1.8% a month? What are the interest charges at 0.7% a month? What are the savings that using the 0.7% card brings over the 1.8% card?2. Alex needs to repay a $ 8500 debt. His bank offers personal loans with terms from one to five years at 8.9% per year, compounded monthly. a) Determine Alex's monthly payment for a five-year term. Use formula and show your work. ( gag. b) Calculate the total interest paid on the loan if he makes monthly payment. c) Determine Alex's payment if he chooses to make bi-weekly and weekly payments. Use TVM Advanced Calculator and fill up the blank. Bi-weekly Weekly TVM Advanced Calculator TVM Advanced Calculator Mode *End O Beginning Mode End Beginning Present Value PV Present Value PV Payments PMT Payments PMT
- 1. Betty Thomas borrowed $6500 onher Visa card to install a hot tub with landscaping around it. The interest charges are 1.6% per month on the unpaid balance a) Find the monthly interest charges. b) Find the interest charges if she moves the debt to a credit card charging 1% per month on the unpaid balance. (c) Find the monthly savings.Please help me answer the following time value of money question. Edison borrowed $10,000 from the Niederriter Loan Company. He has to pay off the loan in 36 monthly payments of $500. What interest rate is he being charged?14) John borrowed $12,000 to buy a new car and expects to pay $564.87 per month for the next 2 years to pay off the loan. What is the loan's rate of interest?
- Mia Sato purchased a new condominium for $225,000. The bank required a $40,000 down payment. Assume a rate of 6% on a 30-year mortgage. What is Mia’s monthly payment? What is Mia's total interest cost if she pays each payment as scheduled for 30 years? Explanation of how to determine the solution to the problem and the correct answer, please.Angela's bank gave her a 2-year add-on interest loan for $6,120 to pay for new equipment for her antiques restoration business. The annual interest rate is 8.28%. How much interest will she pay? What are her monthly payments? Question content area bottom Part 1 She will pay $enter your response here in interest on the loan. (Round to the nearest cent.) Part 2 Her monthly payments are $enter your response here. (Round to the nearest cent.)Nona purchased a new car earlier today for $24,000. She financed the entire amount with a five-year loan that has a 6 percent interest rate (compounded monthly). a. Compute the monthly payments for the loan. Do not round intermediate calculations. Round your answer to the nearest cent. Enter your answer as a positive value. $ b. How much will Nona owe on the loan after she makes payments for 2 years (i.e., after 24 payments)? Do not round intermediate calculations. Round your answer to the nearest cent. Enter your answer as a positive value. $